MONROVIA - Worried that federal funds may be in jeopardy, school district officials are reviewing their relationship with an internet service provider, according to documents obtained by this newspaper.

The Monrovia Unified School District contracts for internet service with the Foothills Education & Technology Partnership. The contract has run since 2003. The district's former superintendent is married to the partnership's executive director.

Questions about the relationship were raised by board member Rob Hammond. A former mayor, Hammond asked Superintendent Linda Wagner last week for a staff report "with a full legal opinion" after Wagner outlined several concerns regarding the relationship in a memo to the school board.

In that memo, Wagner, who sits on the FETP board, expressed concern that the relationship between the district and FETP might affect the district's ability to receive federal funds for technology.

The nonprofit organization, which formed in 2003, provides internet service to seven San Gabriel Valley school districts: Monrovia, Duarte, Pasadena, Mountain View, Burbank, Arcadia and San Gabriel.

Wagner said the district will "definitely be assessing our risk and we will be talking to lawyers" though the school board will need to determine what happens next.

"If (FETP) were not to correct the concerns, we would seek another provider after a reasonable period of time had passed," Wagner said Monday.

FETP's income relies heavily on E-Rate funds from member districts, which are obligated to ensure that the funds are spent appropriately. The E-Rate program is regulated by the Federal Communication Commission. It helps schools get affordable telecommunications and Internet access.

Wagner said she was also concerned that the FETP board has three members instead of five, which violates its own bylaws. She also expressed concern that its current structure might pose a conflict of interest.

FETP "by definition is run by superintendents" who serve on the organization's board, Wagner said. "In a way, we're buying services from ourselves."

Clint Taylor, executive director of the Foothills Education & Technology Partnership, said the organization is addressing "each of the concerns (Wagner) has raised."

The nonprofit organization board has met twice in the last year and will meet again likely within the next 60 days, Taylor said.

Taylor said the nonprofit is "trying mightily" to increase its number of board members and will continue to do so.

The FETP board has also commissioned a School Services of California report to study the FETP, which is focusing mainly on salary and compensation issues, and will make suggestions for improvements, Taylor said.

Wagner said the FETP board will seek legal counsel and consult with E-rate specialists on what should the organization do and how the organization should be structured.

Bryan Wong, Monrovia's school board president, said the board is still waiting to get a clear picture of what is happening so that it can make a decision, if necessary.

A 2010 audit by Monrovia Unified's auditor found that two apparent conflicts of interest in the district's relationship with FETP should have been disclosed to the Universal Service Administrative Company (USAC), which administers the E-rate program.

The school district's superintendent until 2009, Louise Taylor, is married to FETP Executive Director Clint Taylor. In addition, the district's former director of technology services, Bob Geiger, was a consultant for FETP.

Both Clint Taylor and Geiger disclosed their financial interests in the FETP through the filing of public documents. District officials said Geiger recused himself from procurement activities involving FETP once he became a paid consultant in October 2004, according to the USAC.

However, USAC ended up not recovering any money from the school district over this since "we were able to resolve the issues working with the parties involved," a USAC spokesman said Monday in an email.